A coalition of 16 US State Attorneys General has warned some of the country’s biggest companies, including Microsoft, Google and Meta, not to comply with the European Union’s new sustainability regulations.
In a leaked letter to US company executives on November 4, the group accuse European officials of overstepping their mandate and urged US corporations to reject what they called “unlawful” environmental and social mandates.
In the letter sent to Meta CEO Mark Zuckerberg, they argue that the EU rules “ask American companies like yours to follow European ESG [Environmental, Social and Governance] and DEI [Diversity, Equity, and Inclusion] mandates that are unlawful in America.
“American companies must still follow American laws, no matter what European elites may think.
“We urge you to prioritise America and its laws over Europe and its corrosive reporting and compliance,” the letter reads.
“These directives seek to undermine the contrary policies of the [US President Donald] Trump administration and require compliance with the misguided policies of the [ex-president Joe] Biden administration,” the signatories added.
They also argue that compliance with EU rules could lead to “anti-trust probes” by US authorities.
“The [EU’s Corporate Sustainability Reporting Directive] CSRD and [Corporate Sustainability Due Diligence Directive] CSDDD threaten to expose companies like Meta to lawsuits and government enforcement actions in the United States, such as deceptive trade practice actions.
“In addition, corporate alignments with the European Green Deal implicate antitrust issues,” they write.
European lawmakers denounced the move.
Pascal Canfin MEP, a French member of the European Parliament’s Renew Europe Group and a lead negotiator on the sustainability package, condemned the US pressure campaign.
“US laws are extraterritorial and impose obligations on our companies. Europe must also use its strength and the power of its single market to enforce its values,” he said.
“As the negotiator for Renew Europe of the package, I will not let the US pressure us into accepting their policies,” he added.
The CSRD and the CSDDD cover companies’ entire supply chains and require detailed disclosures on their environmental and social impacts, from carbon emissions and pollution to labour practices and human rights.
The letter is part of a series of US efforts to push back against the EU’s sustainability agenda.
Previously, both the US Department of Energy and officials from Qatar have told Brussels that the CSDDD could threaten future LNG exports destined for Europe.
“The CSDDD, as it is worded today, poses a significant risk to the affordability and reliability of critical energy supplies for households and businesses across Europe and an existential threat to the future growth, competitiveness, and resilience of the EU’s industrial economy,” they warned.
In the US, corporations have also been pressuring their government to act against EU rules.
On October 29, major US business associations sent their own letter to senior White House officials urging the Trump administration to block the EU from applying its ESG disclosure rules to US firms.
“Our organisations and members recognise the well-meaning intent of due diligence and efforts to drive operational improvements,” they said.
“Under the current CSDDD framework, however, American businesses will be held legally liable under EU standards for environmental and human rights obligations across their entire global supply chains.
“The mandates extend well beyond traditional ‘due diligence’ into actual, complex mitigation,” they wrote.
As US officials and business campaigns push to weaken Europe’s sustainability agenda, Brussels itself remains divided.
EU lawmakers failed to agree on a united response in October and are set to vote again on November 12 before negotiations with member states and the European Commission can begin.
Current efforts to simplify European “green” rules would be increasing uncertainty for companies rather than easing compliance, a new study from climate think-tank E3G suggests. https://t.co/XV4xTD7ybG
— Brussels Signal (@brusselssignal) October 9, 2025
